Banque Misr achieved exponential growth in all business sectors; with initial financial performance indicators showing significant results. The overall financial position posted EGP 1.5 trillion as at end of June 2021, compared to EGP 1.2 trillion the previous year, at a growth rate of approximately 19%. Net direct customer loans increased at a growth rate of 69.9% to EGP 569.9 billion, compared to EGP 335.4 billion the previous year, thanks to the growth of the retail and small enterprise portfolio by 49% and the growth of the large and medium enterprise portfolio by 74%. Customer deposits also rose at a growth rate of 21%, to around EGP 1.1 trillion, compared to EGP 0.9 trillion the previous year.
The Bank’s retail portfolio – encompassing both conventional and Islamic business – recorded a growth rate of 37.2% compared to the previous year; the number of issued cards amounted to some 12 million; the majority of which operate on a smart chip system, ranking the Bank in second place amongst its Egyptian counterparts for the number of issued electronic payment cards. Locations of vendors conducting business with the Bank numbered some 62,892 locations throughout the governorates of Egypt, with the total volume of transactions (devices, POS, e-commerce) exceeding EGP 31.017 billion from July 2020 to June 2021. The Bank provides the most up-to-date version 3.2.1 of POS devices at these locations, which are also compliant with global PCI DSS standards, as required by global institutions.
Banque Misr has also been focused on financial inclusion and has consistently operated in conformity with the strategy of the Central Bank of Egypt, in order to strengthen the efforts of financial inclusion; most important of which is the transformation from a cash society to a cashless society by endorsing and incentivizing the utilization of electronic payment methods. This is in line with the policies of the National Payments Council chaired by H.E. the President of Egypt, targeting the minimization of the use of banknotes outside the banking sector, while encouraging the use of electronic payment means and channels instead. In realizing this goal and in fulfillment of customers' needs, Banque Misr has offered various salary automation solutions targeting public and private sector companies by provisioning a variety of salary transfer products (salary cards – salary accounts). As such, the number of companies contracting with the bank has numbered 1,942 companies, at a total of 1.099 million cards and more than 98.5 thousand accounts. This is in addition to providing an electronic payment service for tax and customs. Insofar as electronic products, Banque Misr expanded the BM Wallet to include some 1.44 million wallets as at 6/2021; indicating reliance by more customers on this product for performing transfer operations and the payment of various bills.
Worth noting is that Banque Misr has ranked first for the fifteenth consecutive year – since the launch of the Ministry of Finance’s salary automation scheme in 2005 – amongst banks participating in the system – with a market share of 48% and a total of 2.7 million cards affiliated with 1,421 government entities contracting with the Bank. The value of salaries - of both the public and private sector - transferred through the Bank has recorded some EGP 115 billion per annum from 7-2020 to 6-2021.
Within the framework of financial inclusion, the Bank has been keen on offering financial services to various social segments by way of geographical expansion. As such, Banque Misr seeks to expand its network of branches nationwide to be conveniently accessible by customers wherever they may be. In light of this, a number of branches have been recently inaugurated, making the Bank the owner of the largest network of branches, numbering more than 750 throughout the country. This is in addition to its regional and global presence in the United Arab Emirates, Lebanon, France, Germany, China, Russia, South Korea (Seoul) and Italy (Milan). Within the next five years, the Bank targets establishing a presence in Africa – whether through representation offices/branches or others; while maintaining a large network of correspondents covering all countries of the world. It is also worth noting that Banque Misr has been a forerunner of Islamic banking, being the first public sector bank to establish branches for conducting Islamic banking transactions (Kenana), numbering some 47 branches throughout the Arab Republic of Egypt as at the end of November 2021.
Moreover, the Bank possesses a developed network of technologically advanced Automated Teller Machines (ATMs), numbering 4,176 as at the end of November 2021. These ATMs provide withdrawal and deposit services, currency exchange, payment of bills and donations; in addition to cash transfer services. The Bank also renders other innovative services such as being the first bank in Egypt to offer withdrawal and deposit services for electronic mobile phone wallets via its network of ATMs.
Worth noting is that Banque Misr has taken numerous strides towards digital transformation; such as, for instance, updating and developing its internet banking service "BM Online” and offering a bundle of new banking services to customers. Banque Misr has also launched electronic banking services to customers via mobile phones through the mobile banking application, becoming one of the first amongst its counterparts to offer this service through “BM Wallet”. Banque Misr has also recently – and for the first time in Egypt – utilized artificial intelligence technologies to offer the “Automated Assistant Chat Bot” through its web portal, to serve customers around the clock.
Banque Misr also launched the first digital bank in Egypt, in collaboration with French Atos company, which is a leading corporation specialized in establishing digital banks.
The Bank has been the first to offer the technology that enables points of sale (POS) and electronic website purchases via QR Code for mobile wallet customers. The Bank has also automated the financing of micro enterprises, so as to provide the service instantly, for the first time in Egypt.
In the area of Islamic retail banking, all modern-day banking services are offered; including the issuance of all types of cards, in addition to a suite of products developed to serve the customers of Islamic branches (Kenana). Such products include the multiple products of Murabaha; such as the Murabaha of Hajj and Umrah, Murabaha of durable goods, Murabaha of tourism trips, car purchase Murabaha as well as education Murabaha to finance the payment of tuition expenses and fees. Moreover, Banque Misr’s Islamic branches, Kenana, provide the service of "Takaful Banking Insurance" with the assistance of the Egyptian Takaful Life Insurance Company. The value of the Islamic banking portfolio recorded a growth rate of almost 43.8% compared to the previous year.
Banque Misr also finances Micro, Small and Medium Enterprises (MSMEs) via branches located throughout the different Egyptian governorates, in various fields; such as industrial, agricultural and service-based projects. The portfolio of MSMEs – both conventional and Islamic – recorded a growth rate of 43%, with 178 thousand clients as at the end of June 2021.
Banque Misr consistently strives to fulfil the needs of various social segments, in a manner that is conducive to development; by eradicating unemployment and contributing to the development of the community. Accordingly, the Bank has partnered with the Ministry of Local Development to launch “Mashrouak” (Your Project) program, with the objective of financing small and micro enterprises, via the “one-window” initiative within the local units throughout Egypt. Loans were issued to 126 thousand customers at a total value of EGP 14.6 billion as at 30/6/2021.The Islamic banking’s direct and indirect MSMEs portfolio witnessed a growth rate of 62.5% compared to the previous year. With regards to financing major corporations, Banque Misr is considered a national pioneer in financing projects of various sectors. The corporate credit and syndicated loans portfolio – both direct and indirect, conventional and Islamic – posted a significant growth rate of 74.8%. During the period from 1/7/2020 to 30/6/2021, the Bank was able to successfully complete the arrangement, financing and participation in 30 operations, totaling EGP 338.4 billion in various sectors; including real estate investment, land transportation, electricity, contracting, oil and gas, construction materials and information and communication technology, marine transport, tourism and petrochemicals. The Bank’s guarantee coverage for said operations amounted to approximately EGP 143.6 billion. This is in addition to arranging, funding and partaking in Sharia-compliant financing totaling EGP 3.2 billion – in the real estate investment sector – at a coverage of EGP 1 billion.
In light of the extensive marketing plans adopted by the Bank towards attracting new customers and new financing operations – coupled with the commitment to implement its strategic and development objectives that are geared towards supporting the national economy in various fields and sectors – the Bank currently seeks to complete a total of 29 major financing operations, both targeted and under consideration, in various sectors including real estate investment, land transportation, oil and gas, fertilizers, petrochemicals, contracting, education, tourism and others. Said operations amount to approximately EGP 67.2 billion, at a coverage guarantee of EGP 20.8 billion; in addition to 5 Sharia-compliant operations that the Bank seeks to complete, in various sectors such as real estate investment, oil and gas, petrochemicals and contracting. Said operations amount to approximately EGP 13 billion, at a coverage guarantee of EGP 4 billion. This comes as an emphasis of both the Bank’s pivotal role and its status as a national pioneer of the Egyptian banking sector.
The Islamic banking portfolio – direct and indirect in the domain of corporate credit and syndicated loans – recorded a growth rate of 24.1% from the previous year.
Banque Misr adopts a strategy for transforming itself from a conventional bank to one that drives digital transformation in the banking sector in Egypt, as it firmly believes that introducing the elements of digital transformation will further enhance the provisioning of banking and financial services. The Bank has recently inaugurated the Digital Transformation Division, which is considered the first integrated digital transformation division at Banque Misr; representing a resilient model that allows digital transformation in all banking operations. The first digital service was launched under this new digital transformation system through the “Express Loan Online for Small Projects” and “Online Small Projects Murabaha”, whose credit portfolio includes 15,000 customers at a total of EGP 15 billion.
Also worth noting is that Banque Misr is considered one of the largest and most experienced banks in the area of social responsibility; and the most environmentally aware and responsible, insofar as governance regulations, which complement its principles of long-term performance and sustainability. Banque Misr is the first state-owned bank to receive the approval of the General Reporting Initiative (GRI) and reports its business in accordance with the principles of sustainability; by taking into consideration such tenets as governance, human rights, anti-corruption, social participation and environmental safety standards. The Bank also complies with UN Global Compact for Citizenship (Corporate Social Responsibility) standards; and has expended some EGP 1.5 billion on community development as at June 2021.
Banque Misr plays a leading role in corporate social responsibility due to this being one of the main tenets in which the Bank strongly believes. This role is played both directly and indirectly through the Bank’s non-profit foundation "Banque Misr Foundation for Community Development", which holds registration number 7045/2007 and aims to develop and assist the Egyptian community by partaking in a number of activities and initiatives of a social nature, as well as to achieve the best for society in general. This is done in multiple fields including health, education, social solidarity and societal development – as exemplified by developing and improving the most deserving Egyptian villages via MSMEs and contributing to the provisioning of employment opportunities for youths and female breadwinners; in collaboration with Civil Society organizations. This is in addition to the development of slum areas and all that relates to the advancement of the “human” factor. The Bank has reaped more than 67 awards and accolades in various business areas during the previous period, from several global organizations, in appreciation and recognition of its accomplishments and efforts in various sectors. Banque Misr’s acquisition of such an extensive list of awards and accolades comes as a certificate of entitlement to the trust and confidence of its customers, who are considered mainstays in its endeavors to provide all clients with innovative services and products that consistently fulfil their needs. It also demonstrates the Bank’s unwavering commitment to achieve sustainable development and prosperity for Egypt.